H. B. 3140


(By Delegate Michael)
[Introduced March 30, 2001; referred to the
Committee on Finance.]




A BILL to amend and reenact sections twenty and twenty-one, article fifteen, chapter eleven of the code of West Virginia, one thousand nine hundred thirty-one, as amended; and to amend and reenact sections ten and eleven, article fifteen-a, of said chapter, all relating to consumers sales and service tax and use tax; specifying filing periods and filing dates for taxpayers and persons collecting the tax that meet certain monetary thresholds, and specifying effective dates.

Be it enacted by the Legislature of West Virginia:
That sections twenty and twenty-one, article fifteen, chapter eleven of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended and reenacted; and that sections ten and eleven, article fifteen-a of said chapter be amended and reenacted, all to read as follows:
ARTICLE 15. CONSUMERS SALES TAX.
§11-15-20. Quarterly and annual returns.
(a) When the total consumers sales and use tax remittance for which a person is liable does not exceed an average monthly amount over the taxable year of two hundred fifty dollars, he or she may pay the tax and make a quarterly return on or before the fifteenth day of the first month in the next succeeding quarter in lieu of monthly returns: Provided, That the tax commissioner may, by nonemergency legislative rules promulgated pursuant to article three, chapter twenty-nine-a of this code, change the minimum amount established in this subsection.
(b) When the total consumers sales and use tax remittance for which a person is liable does not in the aggregate exceed six hundred dollars for the taxable year, he or she may pay the tax and make an annual return on or before the fifteenth day of the first month next succeeding the end of his taxable January each year: Provided, That the tax commissioner may, by nonemergency legislative rules promulgated pursuant to article three, chapter twenty-nine-a of this code, change the minimum amount established in this subsection.
(c) The amendments to this section enacted in the year two thousand one are effective for tax years periods beginning on or after the first day of January, two thousand one two.
(d) The provisions of this section do not alter or abrogate the accelerated payment requirements of section sixteen of this article.
(e) The amendments to this section enacted in the year two thousand one are effective for tax periods beginning on or after the first day of January, two thousand two.
§11-15-21. Annual return; extension of time.
(a) Date due. -- On or before thirty days after the fifteenth day of January of the year next succeeding the end of the tax year, each person liable for the payment of any tax due under this article shall make and file an annual return in such form as may be required by the tax commissioner, showing: (1) Total gross proceeds of his or her business for preceding tax year; (2) gross proceeds upon which the tax for that year was computed; and (3) any other information necessary in the computation or collection of the tax that the tax commissioner may require.
(b) Supporting schedule for consolidated return. -- Whenever a person operates two or more places of business and files a consolidated monthly return, a schedule shall be attached to the consolidated annual return showing, for each place of business, total sales and charges for rendering services, total transactions subject to tax and total tax collections.
(c) Payment. -- After deducting the amount of prior payments during the tax year, the taxpayer shall forward the annual return along with payment of any remaining tax, due for the preceding tax year, to the tax commissioner. The taxpayer or his or her duly authorized agent shall verify the return under oath.
(d) Extension of time. -- The tax commissioner for good cause shown, may, on written application of a taxpayer, extend the time for making any return required by the provisions of this article.
(e) Waiver of annual filing. -- The tax commissioner may waive the filing of the annual return required under this section for any or all monthly or quarterly filers, or may prescribe alternate filing requirements designating the last return filed by any or all monthly or quarterly filers for the year as the annual return for that year, in lieu of the annual return required by this section, or may prescribe such other alternate filing requirement for the annual return as the tax commissioner may require.
(f) The provisions of this section do not alter or abrogate the accelerated payment requirements of section sixteen of this article.
(g) The amendments to this section enacted in the year two thousand one are effective for tax periods beginning on or after the first day of January, two thousand two.
ARTICLE 15A. USE TAX.
§11-15A-10. Payment to tax commissioner.
(a) Each retailer required or authorized, pursuant to sections six or seven, to collect the tax herein imposed, is required to pay remit to the tax commissioner the amount of the tax for each taxable quarter on or before the fifteenth day of the month next succeeding each quarterly period if the average collection for the retailer does not exceed two hundred and fifty dollars per month. If the retailer exceeds an average collection of two hundred fifty dollars per month, the retailer shall remit the tax for the taxable month on or before the fifteenth day of the next succeeding month. If the annual tax collections average less than six hundred dollars, an annual return may be filed and tax remitted for the taxable year on or before the fifteenth day of January of the next succeeding year. At that the time of payment, each retailer shall file with the tax commissioner a return for the preceding quarterly period in the form prescribed by the tax commissioner showing the sales price of any or all tangible personal property sold by the retailer during the preceding quarterly period, the use of which is subject to the tax imposed by this article, and any other information the tax commissioner may deem necessary for the proper administration of this article. The return shall be accompanied by a remittance of the amount of the tax, for the period covered by the return: Provided, That where the tangible personal property is sold under a conditional sales contract, or under any other form of sale wherein the payment of the principal sum, or a part of the sum is extended over a period longer than sixty days from the date of the sale, the retailer may collect and remit each quarterly period that portion of the tax equal to six percent of that portion of the purchase price actually received during the quarterly period. The tax commissioner, if he or she deems it necessary in order to ensure payment to the state of the amount of the tax, may in any or all cases require returns and payments of the amount due under this article to be made for other than annual, monthly or quarterly periods or such other period as the Tax Commissioner may prescribe. The tax commissioner may, upon request and a proper showing of the necessity to do so, grant an extension of time not to exceed thirty days for making any return and payment. Returns shall be signed by the retailer or his or her duly authorized agent, and must be certified by him or her to be correct.
(b) The amendments to this section enacted in the year two thousand one are effective for tax periods beginning on or after the first day of January, two thousand two.
§11-15A-11. Liability of user.
(a) Any person who uses any tangible personal property upon which the tax herein imposed has not been paid either to a retailer or direct to the tax commissioner is liable for the amount of the nonpayment, and persons any person required by law to hold a West Virginia business registration certificate shall on or before the fifteenth day of the month next succeeding each quarterly period pay the tax herein imposed upon all the property used by him or her during the preceding quarterly period and accompanied by returns the tax commissioner prescribes: Provided, That if the tax liability exceeds an average of two hundred fifty dollars per month, a monthly return shall be filed and tax paid for the taxable month on or before the fifteenth day of the succeeding month, and that if the aggregate annual tax liability of any person under this article is six hundred dollars or less, the person shall, in lieu of the monthly or quarterly payment and filing, pay the tax for the taxable year on or before the fifteenth day of January each the first month next succeeding the end of his or her taxable year, and shall file the annual return as may be prescribed by the tax commissioner. The tax commissioner may, by nonemergency legislative rules promulgated pursuant to article three, chapter twenty-nine-a of this code, change the foregoing minimum amounts.
(b) Any individual who is not required by law to hold a West Virginia business registration certificate, who uses any tangible personal property or taxable service upon which the West Virginia use tax has not been paid either to a retailer or directly to the tax commissioner is liable for the West Virginia use tax upon property or taxable services and, notwithstanding the amount of the annual aggregate annual tax liability, shall pay the use tax imposed upon all property or taxable services used by him or her during the taxpayer's federal taxable year on or before the fifteenth day of April of the taxpayer's next succeeding federal tax year, and shall file the annual return therewith as the tax commissioner may authorize or require.
(c) All of the provisions of section ten with reference to quarterly or annual returns and payments are applicable to the returns and payments required under this section.
(d) The amendments to this section enacted in the year two thousand one are effective for tax years periods beginning on or after the first day of January, two thousand one two.

NOTE: The purpose of this bill is to make the filing periods for sales tax and use tax more consistent and less confusing to taxpayers meeting certain monetary thresholds. First, the bill would make the deadline for all annual returns January 15. Second, if a $250 average monthly threshold is exceeded, a monthly return would have to be filed by the fifteenth day of the next month.

Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.